China’s foreign ministry has said it respects Panama’s sovereignty and recognises its canal as a neutral international waterway, after the head of the strategic channel warned that the CK Hutchison ports deal could jeopardise its impartiality.
Panama Canal Authority administrator Ricaurte Vasquez said in an interview published on Tuesday that CK Hutchison Holdings’ US$23 billion deal to sell its overseas ports to a consortium led by BlackRock and MSC could result in a concentration of operators that would be “inconsistent with neutrality”.
He also reportedly said that a request from the US government to allow its ships to pass through the canal free of charge was not feasible under the waterway’s current regulations.
Responding to a question about recent reports on the matter on Wednesday, Lin Jian, the spokesman for China’s Ministry of Foreign Affairs, said Beijing had always firmly opposed economic coercion, domineering and bullying.
“On the navigation of relevant country’s vessels, China will, as always, respect Panama’s sovereignty over the Canal and recognise the Canal as a permanently neutral international waterway,” Lin said.
“We support Panama’s effort to uphold independence and firmly defend its lawful rights and interests as an independent sovereign country.”
Hong Kong tycoon Li Ka-shing’s CK Hutchison dropped a bombshell in March by announcing the deal to sell its stakes in 43 overseas ports, including two strategic ones at the Panama Canal. CK Hutchison would earn US$19 billion from the sale.
